As a 22-year-old in my third year of an ICT bachelor’s program, juggling studies, an internship, and personal finances can be quite the balancing act. Looking back on my second year of investing in dividend stocks, I can’t help but feel a mix of excitement and satisfaction. What began as a cautious venture inspired by my dad has now blossomed into a passionate pursuit of financial growth. This year was particularly significant as I shifted my focus toward high-yield investments, using my internship payments to fuel my portfolio. The journey was anything but dull.
The Shift to High-Yield Investments
Seeking Better Returns
After my first year of steady but modest returns, I found myself craving more impactful growth. The regular dividends were reassuring, but I couldn’t shake the feeling that I was playing it too safe. With inflation nibbling away at my purchasing power, and with the added responsibility of planning for my financial future, I decided it was time to spice things up. My internship earnings provided the perfect opportunity to invest more aggressively.
Learning from the Masters
I dove headfirst into books, podcasts, and forums, absorbing everything I could about high-yield investments. The more I learned, the more I realized that higher yields came with higher risks. But as they say, fortune favors the bold, and I was ready to take calculated risks to accelerate my portfolio’s growth.
Embracing New Opportunities
Venturing into New Territories
In 2022, I made some bold moves, investing a significant portion of my internship income:
- January 2022: Investing in Shell
- Bought: 102 shares at €21.53 each
- Total Investment: €2,196.06
- April 2022: Investing in Aegon
- Bought: 31 shares at €3.38 each
- Total Investment: €104.75
- May 2022: Investing in Heijmans
- Bought: 3 shares at €12 each
- Total Investment: €36
- August 2022: Investing in SBM Offshore
- Bought: 6 shares at €13.00 each
- Total Investment: €78.00
- September 2022: Adding NN Group and Ares Capital
- 06.09 – Acquiring NN Group Shares
- Bought: 1 share at €40.49
- Total Investment: €40.49
- 28.09 – Entering the U.S. Market with Ares Capital
- Bought: 2 shares at €20.46 each
- Total Investment: €40.92
- October 2022: Expanding with Main Street Capital
- 31.10 – Investing in Main Street Capital
- Bought: 2 shares at €34.92 each
- Total Investment: €69.84
Total Investment for 2022: €2,525.57 total value at end of year €9.169,07 with a 3,42% gain €301,45
Tracking My Dividends: A Year of Growth
August to December 2022: Reaping the Rewards
My focus on high-yield investments began to pay off, literally.
Dividends Received:
- KPN
- Received: €0.048 per share
- Total Dividends: €69.50 (for 500 shares in 2 payments)
- ING Groep
- Received: $0.174 per share
- Total Dividends: €81.20 (for 100 shares in 3 payments)
- PostNL
- Received: €0.14 per share
- Total Dividends: €116.02 (for 271 shares in 2 payments)
- Ahold Delhaize
- Received: €0.46 per share
- Total Dividends: €68.60 (for 70 shares in 2 payments)
- Randstad
- Received: €2.81 per share
- Total Dividends: €95.00 (for 19 shares in 2 payments)
- Main Street Capital
- Received: $0.22 per share
- Total Dividends: €1.03 (for 2 shares in 3 payments)
- Shell
- Received: $0.25 per share
- Total Dividends: €95.97 (for 102 shares in 4 payments)
- Ares Capital
- Received: $0.51 per share
- Total Dividends: €0.96 (for 2 shares in 1 payment)
Total Dividends Received in 2022
- Total Euro Dividends: €526.28
- Total USD Dividends: €1.99
This was a significant increase compared to the previous year, and it felt incredibly rewarding to see the tangible results of my new strategy. with €528.27 of this year’s dividends received that puts the yield on cost to 5,76%. My total dividend stand’s at €550,97.
The Highs and Lows: A Personal Reflection
Navigating Market Volatility
The market this year was a rollercoaster. There were days when my portfolio’s value dipped, causing my heart rate to spike. Balancing the stress of market fluctuations with the demands of my studies and internship was challenging. But I reminded myself of my long-term goals and the importance of not letting short-term swings shake my confidence.
The Thrill of High-Yield Stocks
Investing in high-yield stocks was like adding spice to a bland dish—it made the experience far more engaging. The higher dividends were exciting, but they also came with the anxiety of increased risk. Each dividend payout felt like a small victory, a tangible reward for the risks I’d taken. Using my internship payments to invest added another layer of satisfaction, knowing I was effectively putting my hard-earned money to work for my future.
Lessons Learned
- Due Diligence is Crucial: High yields can be enticing, but they’re often accompanied by greater risk. Thorough research is non-negotiable.
- Diversification Still Matters: While chasing higher yields, I made sure not to put all my eggs in one basket. Spreading investments across sectors and geographies helped mitigate risks.
- Emotional Discipline: Keeping emotions in check during market swings is easier said than done, but it’s essential for making rational decisions.
- Leveraging Income Streams: Utilizing my internship earnings to invest allowed me to grow my portfolio faster without compromising my day-to-day finances.
Looking Ahead: The Journey Continues
Setting New Goals
Buoyed by this year’s successes, I’m setting more ambitious goals for the next year. I plan to:
- Increase My Positions: Continue investing in high-yield stocks, increasing my holdings where appropriate.
- Explore New Markets: Consider emerging markets for diversification and potentially higher returns.
- Reinvest Dividends: Leverage the power of compounding by reinvesting dividends to accelerate growth.
- Balance Studies and Investing: As I continue my ICT bachelor’s program, I’ll strive to balance my academic commitments with my investment activities.
Embracing the Unknown
I know the road ahead will have its challenges, but the thrill of the journey is half the fun. I’m eager to see where this path will lead me financially and personally. As I approach graduation, I’m confident that the financial foundation I’m building now will serve me well in the years to come.
Conclusion
This year has been transformative. Not only have I grown my portfolio and increased my dividend income, but I’ve also grown as an investor. Embracing high-yield investments added a layer of excitement and risk that pushed me out of my comfort zone. It wasn’t always easy, but it was absolutely worth it. Using my internship payments to invest has been a game-changer, accelerating my progress toward financial independence. As a 22-year-old student, I feel empowered knowing that I’m taking proactive steps to secure my financial future.